Rex Trueform Group Limited
Climate Impact & Sustainability Data (2020-07 to 2021-06)
Reporting Period: 2020-07 to 2021-06
Environmental Metrics
ESG Focus Areas
- Sustainability
- Ethical Conduct
- Social Responsibility
- Transformation
- Environmental Impact
Environmental Achievements
- Implemented various water and energy-saving measures at Rex Trueform Office Park, including using filtered borehole water and installing energy-saving light fittings.
- 100% recycling of reject clothing hangers.
- Recycling program implemented at Rex Trueform Office Park.
Social Achievements
- Donated approximately 8,500 units of merchandise to The Clothing Bank, supporting 1,713 business owners.
- Contributed to the tertiary education costs of three deserving previously disadvantaged students.
- Achieved a level 2 rating with a score of 67.5 out of 73 points in Broad-based Black Economic Empowerment (B-BBEE).
- Achieved a recognition rating of 125% for preferential procurement and empowering supplier status.
Governance Achievements
- Substantial compliance with King IV principles.
- Continued implementation of King IV through application of the King IV disclosure and application regime.
- Appointment of a social and ethics committee to monitor ethical conduct and responsible corporate citizenship.
- Implementation of a whistle-blowing hotline for reporting ethical violations.
Climate Goals & Targets
Medium-term Goals:
- Significantly diversify the group.
Short-term Goals:
- Expand retail footprint with a focus on appropriate store sizes, rentals, inventory management, product mix, and staff.
Environmental Challenges
- COVID-19 pandemic and associated lockdown restrictions impacting retail segment turnover and property sector.
- Civil unrest in KwaZulu-Natal and Gauteng resulting in store closures and damage.
- Regulatory delays in Telemedia investment.
- Shipping delays, inflation, and power outages in China impacting supply chain.
- Vacancies increased to 9.4% in the property portfolio.
Mitigation Strategies
- Strict cost control, careful cash management, and protective capital allocation.
- Renegotiation of leases with landlords and securing rental relief.
- Improved health and safety measures, cost-cutting, and cash flow management in water infrastructure segment.
- Closing of unprofitable stores, relocation and downsizing of others, and opening of new small-format stores.
- Continuous search for potential suppliers locally and abroad.
- Continuous analysis of the supply chain process to identify inefficiencies and implement improvements.
Supply Chain Management
Responsible Procurement
- Supplier code of ethics
- Third-party audits
- Formal procurement process
- Due diligence processes to ensure suppliers meet relevant criteria
- Supplier development program to remove barriers for emerging black and black-women owned businesses
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: King IV
Third-party Assurance: PricewaterhouseCoopers Inc.